Jonathan is not a reckless spender –FG

The Federal Government on Sunday blasted a former Vice-President (Africa), World Bank, Dr. Oby Ezekwesili, for alleging that the Umaru Yar’Adua and President Goodluck Jonathan administrations squandered foreign reserves of about $67bn, describing the statement as factually incorrect and outlandish.

Minister of Information, Mr. Labaran Maku, made the Federal Government’s position known at a press conference in Abuja.

Maku was at the briefing with the Special Adviser to the President on Performance Monitoring, Prof. Sylvester Monye; Chief Economic Adviser to the President, Prof. Nwanze Okedigbo; and the Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe.

Ezekwesili had on Thursday at the convocation lecture of the University of Nigeria, Nsukka, said the two administrations needed to tell Nigerians how they spent the $45bn left in the foreign reserves account and $22bn in the Excess Crude Account by the former President Olusegun Obasanjo administration.

Ezekwesili, who was Minister of Solid Minerals and Education under Obasanjo, said Nigerians had lost dignity because of ravaging poverty arising from poor choices of the elite, corruption and lack of investment in education.

Noting that the country had enjoyed five cycles of oil boom, she decried the failure to convert oil income to renewable assets through training of human capital, development of other sectors and investment in foreign assets as other resource-rich countries did with their oil income.

But Maku said the former minister’s statement betrayed “a surprisingly limited understanding of government finances.”

He said Ezekwesili’s statement was more curious considering the fact that she had held senior positions in government and World Bank.

Maku said, “The statement by the former World Bank vice-president that the governments of Presidents Musa Yar’Adua and Goodluck Jonathan have squandered $67bn in reserves (including $45 bn in external reserves and $22 bn in the Excess Crude Account) left by the Obasanjo administration at the end of the May 2007 is factually incorrect.

“At the end of May 2007, Nigeria’s gross reserves stood at $43.13bn-comprising external reserves of $31.5bn, $9.43bn in the Excess Crude Account and $2.18bn in the Federal Government’s savings.

“These figures can be independently verified from the CBN’s records. The figure of $67bn alleged in her statement is therefore clearly fictitious.”

Maku explained that since Obasanjo left office, the reserves had experienced fluctuations rising from $43.13bn in May 2007 and peaking at $62bn in September 2008 during the Yar’adua/Jonathan administration when oil prices peaked at $147 per barrel.

He added that the reserves fell subsequently to $31.7bn in September 2011, a situation which he attributed to the global financial crisis, which according to him, caused the CBN interventions in the currency market to defend the value of the naira.

The minister explained that the Excess crude savings were also used to stimulate the economy at the height of the global financial crisis to the tune of about $1bn, representing 0.5 per cent of the nation’s 2009 Gross Domestic Product.

He recalled that Nigeria was one of the few countries in the world that did not seek assistance from international financial institutions.

Maku added that the fiscal stimulus used to shore up the economy during the period was shared by all the three tiers of government, including commitments of about $5.5bn made under the Obasanjo administration for power projects.

He said, “On the issue of reserves, it is fallacious to say that the nation’s external reserves were dipped into or misapplied by the Federal Government. It is important to note that the Federal Government cannot dip its hands into external reserves.

“Like in other countries, the management of external reserves is one of the statutory mandates of the Central Bank of Nigeria.”

The minister cited Section 2(c) of the CBN Act (2007) that states that the bank shall maintain external reserves to safeguard the international value of the legal tender currency.

He insisted that no President since the democratic dispensation had contravened the Act.

Maku explained that other uses of the reserves were to settle both public and private sector foreign currency obligations of Nigeria, including the importation of goods such as equipment for power sector.

He said whenever a ministry or agency needed to incur approved expenditure in foreign currency, it must provide the naira equivalent to the CBN before the bank sells the required foreign currency.

This, he said, Ezekwesili, as a former World Bank Vice-President for Africa must have known.

The minister said while no one was disputing that Nigeria still faced challenges most of which were built up over a long time, Nigerians needed to acknowledge the achievements of the present administration in the aftermath of difficult but necessary macroeconomic and structural reforms being implemented.

He said the Jonathan administration was focused on promoting a stable, non-inflationary and inclusive economic environment for Nigeria to ensure that Nigerians could live better and more fulfilled lives.

Maku said the administration had restored macroeconomic stability against the backdrop of global economic uncertainty, slow growth in the United States and high unemployment and unsustainable debt in Europe.

While saying that Nigeria’s economy grew by about 6.4 per cent in the first three quarters of 2012, the minister added that it was set to continue at a similar pace in 2013 according to independent forecasts.

He said the government had reduced the country’s fiscal deficit to only 2.17 per cent of GDP in the 2013 budget while rebalancing its spending in favour of capital expenditure.

These achievements, he added, had already received endorsement from international rating agencies.

Maku said at a time when many advanced and emerging markets were being downgraded, Fitch and S&P had upgraded the nation’s sovereign country ratings.

He added that the inclusion of Nigeria’s sovereign bonds in the emerging market bond indices of JP Morgan and Barclays also testified to the growing confidence of the international investment community in the economy.

Also, Special Adviser to President Goodluck Jonathan on Political Affairs, Mr. Ahmed Gulak, accused the Olusegun Obasanjo Administration of wasting $16bn on power supply.

Gulak was reacting to Ezekwesili’s statement.,

However, an aide of former President Olusegun Obasanjo, who asked not to be named, said, “He (Gulak) must be ignorant. Everybody knows that former President Olusegun Obasanjo’s power project had led to the improvement of power supply in the country.”

Gulak, in an interview with one of our correspondents in Abuja, claimed that the Olusegun Obasanjo administration, where Ezekwesili served as a minister, spent $16bn on power, with no improvement.

Gulak, who insisted that Nigerians had yet to benefit from the huge investment, accused Ezekwesili of castigating the Jonathan administration because she was left out of the government.

He queried, “When Ezekwesili was there in government what did she do?

Was it not under the Obasanjo Administration where she served that we spent $16bn on power. Did we get the power? I’m asking?”

“You see these people are making all these statements because they are out of government. What she has said is not true, it is unfortunate, it is pathetic, because it is incorrect.”

They said the woman was wrong but never told us what happened to the money that is no longer there. They always think everyone is a fool in this country. Mr Maku, you did not answer the question which is “Where is the money NOW?”…

From Brazil

But I think there are many other striking issues raised by Oby in her presentations which is available in full at saharareporters.com. Why don’t they come out in full force to address all the issues. They say the economy is growing with whatever indices, who cares about that when such cannot put food on the table of the common man or make him secured in his country. It only makes them to have more fund to travel all over the world and get more jets. Your days are all numbered – 2015.

Martin

Same ole Same ole!…. These idiots must really think everyone is stupid in 9ja.

This’ a case of thievery and their best form of defense is to reduce the amount or magnitude of their crime, but unable to claim inocence ços even their unborn grand kids know they’re darn guilty.

Everyday is for the thief, but one day na for the owner!

analyst

MY brother ezekwesili did not make critical analysis by comparing what obasanjor generted in his tenure of 8 yrs and how it was utilized,which i supposeshe should have good insight in but was talking what happened when she was out.oby how much did obj made in 5yrs, how much was used then sight the projects it was utilized on,pls. u were there with him.Tell us wht happend in ur tennure so that we can compare.

Kayode O

So Maku now knew better about monetary sector than Ezekwesili, as a former World Bank Vice-President for Africa. This Gej with his criminal in Aso Rock when are they going to stop all this bullshit. May God bless you guys on that nation. amen

david

Kayode, don’t bother yourself we have seen many of makus and how they have ended so he wll not be different

Onisile Olaposi

MR MAKU don’t mind DR Oby Ezekwesili, her allegations are just too bad to be real,but mr minister how much did your master mr jonathan have squander so far including gain from increase in the pump price of petrol. since JANUARY 2012?

Kayode O

The right person to come out &tell us about the money is Ngozi after all she’s part of Obasanjo Govt & a minister of finance then & now, not those jamboree called themselves presidency information minister especially the useless one called himself a medical doctor turned to politician.

JACEE

NGOZI CAN NEVER COME OUT AND SAY ANYTHING AS SHE KNOWS THAT EZEKWESILI IS TELLING THE TRUTH . FACT IS JONATHAN HIMSELF DOES NOT EVEN KNOW WHAT IS HAPPENING IN THE GOVERNMENT HE IS PURPORTING TO LEAD . LET HIM ANSWER THE QUESTIONS HIMSELF AFTER ALL HE IS THE PERSON THAT STOLE THE VOTES IN 2011 . THE MAN IS SIMPLY A CLUELESS DUNDERHEAD .

Udo Bassey

Dr. Ezekwesili, please if you think that UMYA/GEJ have squandered money and made we the 99% poorer then come to see the condition of Akwa Ibom people under Godswill Akpabio the Emperor.

james

what did you xpect from the government of handpick, for Akpabio his days are number come 2015 we will disgrace him

No Nonsense

Disgrace him for what ? For not stacking the money away in foreign bank account like his predecessor did ? You be mumu.

Olumilo

The woman is saying the truth, the truth is better. the government of GEJ has failed the nation,the government should do the right thing at right time, they will give account of everything sooner than later.

DrP2

Are you sure she is saying the truth or just parroting a message?
The Central Bank annual report 2010, which is freely available online indicates that there was indeed a draw-down to obviate pressure on the economy from international economic recession.

Moreover this administration has created about 9 new universities including one in Ekiti state which had the most professors yet no federal universities, can we say that creating such number of universities will cost a bag of guguru, and it is nothing to show for public expenditure….this is a reckless statement by a World Bank official who should know better and has better channels to raise concerns….clearly a political statement

Rhomax

Can’t say that Jonathan is a wasteful spender but I know that he is a glutton.

Easy

Gluttony is not an offense in civil law. Even if the man is one, which is doubtful, we should leave it between him and his God.

Rhomax

ok

Tomiwa

It is very unfortunate that we are ruled by incompetent rulers but l know the time of deliverance is near as you can only fool the people for just a while. I appreciate that Dr Ezekwesili could come forth to speak her mind and prosperity will remember her for her forthrightness.

Irene Peter

Whenever Government Officials are talking of the rot that has been building up a long time ago they blame it on other people when in fact they are contributing daily to the rot. PDP has been in power since 1999. About 14 years now with nothing to show for it. Obasanjo on Labour day in 2001 promised uninterrupted power supply. Today the whole country is still in darkness. though Jonathan lied to CNN that there is an improvement. I live in Lekki and work in Broad Street. More than 90 percent of the time we depend on Generator. This improvement must only be in ASO rock. All federal roads are dilapidated. Before PDP it takes me an average of 4 hours to Benin today it can take between 8 to 12 hours. To make the same journey. For this country to vote for PDP again will lead to total collapse. Do they sit down and think of what will happen in the next ten years with comatose infrastructure, endemic corruption, acute youth unemployment , consulting clinics call hospitals , kidnapping, Boko Haram, Jambs, arm robbery. For Gods sake what is PDP using our money for if not wasting it for themselves and families. Jonathan will go down in History as the worst head of State ever produced by this country. I watched him on CNN. I also watch other Leaders. The differences were clear.

Ade

Maku ma ku nijo kan with all your bold face lies, where is the Money? How much did your Oga meet? and how much is our current reserve? what have Gej spent the money on because we cant see anything as am blogging with the candle. I believe Dr. Oby over you gangsters anyday

Ojo Olajig

Gulak popularly known as (GOOD DOG) is an illiterate, very uncivilized idiot. A sewer rat.

Its means that those in government are truly sharing the state monies.

I could now understand why pdp is trying to re-elect the DOPE as Nigeria president again.

It is only under a DOPE.that what is happening Nigeria can happen,

http://twitter.com/solaogundeko Sola Ogundeko

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kabeer

From dr Ezekwesili and Maku himself, they are all bunch of liers and thieves. During Obansanjo’s administration, were was Ezekwesili wen he ws putting the cake in front of him and sharing it amongst themselves including her? Y didn’t she talk? Becouse no matter how small, atleast the iceing gets to her. And u maku, just shut up and continue stuffing urself wit harram. You are talking now becouse the government is yours. By the time you are kicked out of the government, you’ll also come out and talk nonsense just like she did. Foolish idiots. All of you should know that Nigerians don’t have respect for any of you now. Its just too pathetic that poorverty makes us obedient. Wallahi all of you bastered thieves will die uselessly in shaa ALLAH.

http://www.facebook.com/jemes.emmanuel Jemes Emmanuel

i think obj saide who will improve the moni he stool in nigeria

Angel

For there is never any part of the World has stimulus shear among the Poloiticians, than Private Sectors as happened in Nigeria. By implication the Politician(Federal, States and Local government) within PDP shears the money and where is Ezekwesili’s misinformation and wrongdoing …. the fiscal stimulus used to shore up the economy during the period was shared by all the three tiers of government, including commitments of about $5.5bn made under the Obasanjo administration for power projects”

Water No Get Enemy

Labaran Maku d govt. megaphone has always been known to speak from both sides of his mouth n as such cannot be believed.He is a disgrace to unionism and to his generation for often being on d side of falsehood as a former unionist at University of Jos SUG.Let him tell us how much is presently in Federal Reserve n stop this mouth diarrhea of his.

Angel

For there is never any part of the World has stimulus share among the Politicians, than Private Sectors as happened in Nigeria. By implication the Politicians(Federal, States and Local government) within PDP shears the money and where is Ezekwesili’s misinformation and wrongdoing …. the fiscal stimulus used to shore up the economy during the period was shared by all the three tiers of government, including commitments of about $5.5bn made under the Obasanjo administration for power projects”

Anthony N Z Sani

The altercations between Ezekwezili and Hon Minister Maku may be healthy but they are not informative and educative enough.For example,the Dr did not tell Nigerians what impact the alleged expenditure of the foreign reserves and Excess Crude Account had on socio economic indices:whether there have been improvement or not.
Hon Maku is right in his submission that the use of foreign reserve is an exclusive preserve of CBN,precisely because the equivalence of the foreign reserve in naira had already been shared among the three tiers of government.And so they cannot use the same fund more than once;and that is why each government must pay CBN the equivalence in naira before access to the foreign reserves.But the federal government has a say in what imports the foreign reserves could be used for.To use foreign reserves for importation of all sorts of finished goods could be blamed on government policies.
As to the $16b expended for power projects by President Obasanjo,it may well be that the current improvement in power owes its origin to that expenditure.So we need to know more.
Therefore,I appeal to the duo to inform and educate Nigerians more on the use of the said funds for performance.But for now,they are more in a duet presented as a duel of ideas and reasons.

de_wale

I hope you are not blind, look around you what do you see?
Good or bad?

Shozzy

You have made very sensible comment here. You’re analytical and objective.

ladi9lives

well put mr sani…i couldnt agree more

http://profile.yahoo.com/2AJLAGIQCDF5BO7W3AEAHKS2H4 okunfolarin

I do not blame GEJ but those nigerians who voted for visionless candidate with no good records of political admin achievement. The man was Bayelsa Gov for some period with no achievement. How did you expect him to perform in country called Nigeria. It will be suicide for Nigerians to elect this man again.
Comparing this GEJ admin with that of OBJ is a total mismatch. Vision to pursue was there during OBJ (farmer) but TRANSFORMATION under GEJ(phd). Goodluck cannot even transform his luck not to talk of Nigeria.
What we need is VISION & PERFORMANCE and not luck & tribalism that cannot be sustained.
WHAT ROLE IS REUBEN ABATI PLAYING? Reuben remember your followers at PATITO GANG. is this what you want to achieve thru patito gang? We are watching you.

Oweja

I carry God beg you o. Stop harassing Reuben please. Allow him to chop some kekefia with the Izon man.

Easy

You self. You too much. Where you carry God, on your shoulders?

ladi9lives

i think reuben should honourably step down as its apparent that GEJ don fall him hand.No amount of packaging can help a bad product.There is life after government.take a cue from Mr adeniyi @ thisday

Foluso

When a Napoleon is in power in Nigeria, a Squeler comes out shamedly to defend him .Honestly speaking, I’ve not seen anything worthwhile tha Jonathan has done since he assume office. Thank God that the same people that have been in the PDP government have ben talking about reckless spending. We don’t need a Labaran Maku to tell us anything about this government. The Boko Haram, JAMBS, the epileptic power supply, death-trap roads incessant fuel scacity, spade of armed robbery and kidnapping, all these things that calling for attention before the country degenerates to stone age show that Mr president is just ‘sidowm’ look.

Man_Enough

At least OBJ solved communication problems. What will GEJ
point to? We are waiting to see how much Goodluck will leave in our external
reserves when he leaves office.

Oweja

Na compulsory make we maintain an account for external reserves? As the thing dey cause gbege like this, we no go fit scrap am? Cancel this external nonsense make man rest a-beg!

The Truth Sayer

“At the end of May 2007, Nigeria’s gross reserves stood at
$43.13bn-comprising external reserves of $31.5bn, $9.43bn in the Excess
Crude Account and $2.18bn in the Federal Government’s savings.
Where is this money Maku said Yar Adua/GEJ inherited?
Maku is fucked up on drugs and so can come out and say any rubbish to Nigerians. Let him keep ranting and say or do anything they like. I know for sure, jungle go soon mature and we go know the people wey go run. Nonsense…………….

chigoz99

The Federal Government says that Goodluck Jonathan is not a reckless spender. He should not be. Yet, he owes all Nigerians an explanation over those statements made by Oby Ezekwesili. The President should address Nigerians via a nationwide broadcast on this Matter. Speaking through Labaran Maku (Information Minister) or Doyin Okupe is not sufficient. If we call the news an allegation, Jonathan keeping silent will only make Nigerians feel that Ezekwesili is true and correct.
Ezekwesili should equally answer to questions being asked her in her capacity as Nigeria’s Education Minister, cos it is funny to hear that she was fielding Consultants alone during her tenure to do the jobs in the Ministry, and leaving the civil servants there redundant. So, if this statement against her is true, then, she was a reckless spender as well. She has to tell us why she felt that Consultants were more useful to the Federal Ministry of Education, and of course, she should tell us what she did with the over N400 billion naira.
Barr. miss chigozie ifeoma nwagbara, LL.M – 08033335091, FCT – hichibaby@yahoo.com

Egwudiuzo

I think that you will find each of the points raised by the good doctor has been addressed in the above piece.

ESQUIRE

I WONDER OBY COULD BE A BITCH, DON’T CALLED BRO JONAH ILLITERATE IF YOU KNOW THE MEANING COS HE’S NOT, HE’S NOT THE FIRST LEADER IN NIGERIA, TALK ABOUT ALL THOSE ABOKI LIKE THE ONE WHO SQUASH N23BILLION, ORDINARY POLCE FOR THAT MATTER, EVEN THIS BITCH DID’T SAW HIM BA.

ladi9lives

The pedigree (or lack of it) of Jonathan’s spokesmen and their lack of tact in dealing with issues really questions his decision making abilities .Who is this clown gulak and what has been his contribution to Nigeria’s economy and reputation in comparism with Dr Oby’s?? Furthermore Maku’s explanations are not satisfactory.While there were a lot of lapses in obasanjo’s govt., you cant dispute the fact he sorted out our foreign debts and still left very healthy foreign reserves .@DrP2- How can you bring the establishment of 9 universities as a tenable arguement…if some of the reserves were used to stimulate infrastructural development abeg let the minister say so.We are still running on about 30% for capital expenditure (of which quite a healthy sum goes down in corruption)and 70% for recurrent and we are amazed at lack of development?? please!! I think fashola would do better..(and dont argue that lagos cannot be compared to the whole of Nigeria as he that is faithfull over little same shall he be over much).wetin GEJ do as governor asides from coasting.

paparazzy

This Mr Maku must be a dummy. It seems he doesn’t understand the links between macro-economic variables and economic growth. Nigeria is rapidly undergoing retrogression in terms of drivers of economic growth and development: the quality of life, Standards of living, continuously novediving of foreign reserve , and high rate of unemployment amid these, this inept and grossly awkward government purported to have restored macroeconomic stability.

Where is the stability or what does macroeconomic stability means to this corrupt puppets who have found solace in inflicting pains to Nigerians?

My bounded rationality suggests that Jonathan’s administration completely lacks intellectual know-how to run a country, or the smart ones in his administration have found out the extent of his näiveness; and are thus riding on his naivety to loot the country’s resources.

Dr Oby has risen critical points and she intends pioneering a better reforms in Nigeria. I strongly believe she knows better than most of these useless ministers, and she has sufficient facts to buttress her claims. I urge the elites, the pressure groups, the students and all the stakeholders in Nigeria to give her the supports she needs.

Columnists

"Mr Orubebe, you are former minister of the Federal Republic, you are a statesman in your own right and you must be careful about what you say and about the allegations or accusations that you make and certainly you must be careful about your public conducts."

INEC's Chairman, Attairu Jega cautioning Orubebe over his conduct during the release of the Presidential election results.